Geneva: The US and China announced on Monday that they have reached an agreement to significantly reduce mutual tariffs for 90 days, a move aimed at defusing trade tensions between the world’s two largest economies, which have cast a shadow over markets and raised fears of a global economic slowdown.
According to Qatar News Agency, the decision followed talks held in Geneva, Switzerland, last weekend between US Treasury Secretary Scott Bessent, Chinese Vice Premier He Lifeng, and International Trade Representative Li Chenggang. Bessent described the talks as productive and firm, adding that both sides showed great respect, indicating a positive atmosphere during the meeting, according to a joint statement.
The two sides agreed to reduce these tariffs by 115 percentage points, bringing the US tariff to 30 percent and the Chinese tariff to 10 percent, said Bessent. Last month, US President Donald Trump announced a 145% percent tariff on goods imported from China, compared to a 10 percent tariff on other countries. China retaliated by imposing a 125 percent tariff on US goods.
The agreement comes after President Trump announced a separate trade deal with the UK, maintaining 10 percent tariffs on most British goods.